EDACafe Editorial 
Sanjay Gangal
Sanjay Gangal is the President of IBSystems, the parent company of AECCafe.com, MCADCafe, EDACafe.Com, GISCafe.Com, and ShareCG.Com. EDACafe Industry Predictions for 2025 – Logic FruitDecember 31st, 2024 by Sanjay Gangal
By Sanjeev Kumar, Co-Founder & CEO of Logic Fruit Technologies  Sanjeev Kumar Reshaping the Skies and Borders: Strategic Aerospace and Defense Outlook for 2025 with India’s contribution_____________________________________ Leading the way for technological innovation, the A&D sector develops advanced military systems and weapons to improve the safety and security of airplanes and spacecraft. It has a major influence on national and global security and is also a key factor in economic growth, job creation, and technological advancement.
With long-term possibilities in both the commercial and military realms, this growth highlights the sector’s potential as an interesting investment opportunity. With increased defense spending, modernized military hardware, and a strong emphasis on cybersecurity, the aerospace and defense (A&D) industry is expected to continue growing in 2025. With the commercial aviation industry recovering from the pandemic and passenger traffic hitting record highs in spite of supply chain issues, the A&D market is expected to grow and offer investors a bright future. This article examines the forecasts for the aerospace and defense sector in 2025, emphasizing significant market developments and the incorporation of artificial intelligence. It outlines how these elements will influence the industry’s future course and the actions businesses will take to meet these new demands. Market Growth of Aerospace and Defense of 2025 According to SNS Insider, the global aerospace and defense market was USD 899.72 billion in 2023 and is projected to grow to USD 1417.87 billion by 2031. For the 2024–2031 forecast period, the market’s computed CAGR is 5.85%.
The rapid development of new technology is causing constant change in the A&D sector. This has led to the development of new defense systems and aircraft that are more capable, cost-effective, and efficient. AAM stands for Advanced Air Mobility, the expanding on-demand transportation sector that uses electric vertical take-off and landing (eVTOL) aircraft. It is expected that the crisis in Ukraine will eventually have an impact on the A&D industry. Funding for defense projects worldwide is likely to increase as a result of the war’s emphasis on the need for defense investment. Rising urbanization and rising incomes in emerging markets are expected to drive a significant increase in the global demand for commercial air travel in the upcoming years. Over the next 20 years, the International Air Transport Association (IATA) projects that passenger traffic will increase by 3.6% annually on average. Over the next 20 years, the Asia-Pacific region is expected to account for more than half of the global increase in passenger traffic, with this growth expected to be especially strong there. Latin America and Africa are two other regions where demand for air travel is predicted to rise significantly. For both domestic and international businesses, the Indian aerospace and defense market has attractive and substantial supply chain prospects. India has the third-largest armed forces in the world, and its defense budget makes up about 1.97% of its total income. 2025 Outlook – The Role of AI in Shaping Aerospace and Defense MarketsArtificial Intelligence (AI) has gained traction in the aerospace and defense sector during the past year, and its potential indicates that new areas of successful application will emerge. By 2025, the aerospace and defense sectors will heavily rely on artificial intelligence (AI). AI will improve flight management and air traffic control in the aerospace industry. The technology enables aerospace companies to optimize customer service and system administration, enhance safety, and change their manufacturing processes. Furthermore, AI removes human mistakes, promotes efficient decision-making, and can solve complicated issues faster than humans. Artificial intelligence is used in the aircraft industry for manufacturing, pilot training, air traffic control, and fuel efficiency. AI will power a range of defense applications, such as data analysis, autonomous fighting systems, drones, and unmanned aerial vehicles (UAVs). Drones and robots powered by AI will perform tasks like fighting, surveillance, and reconnaissance while assisting human operators to lower risk and improve operational capabilities. As AI increasingly functions in complicated, high-risk situations, substantial expenditures in cybersecurity will be necessary to protect key military systems. How will AI be integrated into the aerospace and defense sector? AI will play a transformative role in several areas:
Market growth of AI in the Aerospace and Defense industryAccording to Precedence Research, The global market for AI in aerospace and defense was valued at USD 25.43 billion in 2024 and is projected to increase at a compound annual growth rate (CAGR) of 9.91% from 2024 to 2034, reaching USD 65.43 billion.
According to the above report, The global market for AI in aerospace and defense is expected to be led by the North American area between 2024 and 2034. The use of AI systems by businesses to expedite their design cycles at a critical stage before manufacture and final deployment with air traffic control is the idea behind artificial intelligence in aerospace and military. AI is used in production and maintenance in the aerospace and defense industries. This includes supply chain optimization, industrial automation, and processing massive data sets to assist maintenance engineers. End Note The aerospace and defense industry is working to secure sustainable development while it recovers from the COVID-19 epidemic. Recent technological developments will continue influencing the aerospace and defense sectors in 2025. Among the significant advancements that will influence defense and aerospace trends in the upcoming year are immersive technology, additive manufacturing, and artificial intelligence. By 2025, technical developments, changes in geopolitics, and sustainability issues will all impact the aerospace and defense sector mainly on the positive side. The industry’s expansion will depend on its ability to integrate technology, adjust to changes, and solve security issues. With a push from the Government and a few strategic VC/PE initiatives in India’s Aerospace and defense, it can be a turning point for India’s engineering research and development firm to develop and own the technologies instead of doing it for others. However, money alone will not solve the problem of low R&D in the Indian ecosystem; the talent will be, which is mostly attracted by US multinational companies. I hope to see a change in the engineering ecosystem, which will value work and research more than money. About Author: Sanjeev is a renowned technopreneur in the Semiconductor and Aerospace & defence industries. With 15+ years of experience in engineering R&D and 10+ years as Logic Fruit CEO, he is known for his enormous resilience. His deep tech knowledge sets him apart as a future leader in the industry. Sanjeev started his career as a hardware designer and then forayed into the FPGA domain. Acquiring a deep understanding of FPGA/DSP-based system development, he and Anil, Rohit, and Vineet started Logic Fruit Technologies. Before starting his entrepreneurial journey in 2009, Sanjeev was part of CDoT-Delhi and Agilent-Gurgaon. He is a B. Tech (EE) graduate from IIT Kanpur and is passionate about sports, spirituality, and humanity. He is an avid badminton and cricketer player and greatly supports Guided Meditation and Yoga. References https://www2.deloitte.com/us/en/insights/industry/aerospace-defense/aerospace-and-defense-industry-outlook.html Tags: AdditiveManufacturing, AdvancedAirMobility, AerospaceAndDefense, AIInAerospace, CyberSecurity, DefenseTechnology, EngineeringInnovation, FPGA, FutureOfAviation, GeopoliticalTrends, GlobalDefenseMarket, IndianAerospace, MilitaryInnovation, SemiconductorIndustry, SustainableDevelopment |
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